Subhash Silk Mills reports Q2 loss after deferred tax charge

Subhash Silk Mills Limited recorded a Rs 4.21 lakh loss for the quarter ended September 30, 2026, after a Rs 18.93 lakh deferred-tax charge exceeded its Rs 13.98 lakh profit before tax. The result followed a Rs 8.40 lakh profit in the preceding June 2026 quarter.

Why did Subhash Silk Mills report a Q2 loss?

Subhash Silk Mills reported a loss because its Rs 18.19 lakh total tax expense was greater than its Rs 13.98 lakh profit before tax in the September 2026 quarter. The tax expense comprised a Rs 18.93 lakh deferred-tax charge, partly offset by a Rs 74,000 current-tax credit. The company reported no exceptional or extraordinary items in the quarter.

The deferred-tax movement differed sharply from the June 2026 quarter. In June, Subhash Silk Mills reported a Rs 44,000 pre-tax loss but a Rs 8.40 lakh profit after a Rs 18.89 lakh deferred-tax credit and a Rs 10.04 lakh current-tax charge. In the September 2025 quarter, it reported a Rs 35.94 lakh pre-tax loss and a Rs 30.35 lakh post-tax loss, with a Rs 5.59 lakh deferred-tax credit.

Basic and diluted earnings per share were both negative Rs 0.10 in the September 2026 quarter, against positive Rs 0.20 in June 2026 and negative Rs 0.72 a year earlier. Paid-up equity share capital was unchanged at Rs 4.05 crore, based on a face value of Rs 10 per share. With no other comprehensive income reported, total comprehensive income was also a Rs 4.21 lakh loss.

How did Subhash Silk Mills' quarterly revenue and expenses change?

Subhash Silk Mills generated Rs 58.12 lakh of total revenue in the September 2026 quarter, up from Rs 12.28 lakh in September 2025 but below Rs 64.23 lakh in June 2026. Other income contributed Rs 56.99 lakh, while revenue from operations was Rs 1.13 lakh. Other income was Rs 11.52 lakh a year earlier, and operating revenue was Rs 75,000.

Total expenses fell to Rs 44.14 lakh from Rs 64.67 lakh in June 2026 and Rs 48.22 lakh in September 2025. Administrative and other expenses declined to Rs 24.54 lakh from Rs 37.80 lakh sequentially, while depreciation and amortisation fell to Rs 9.57 lakh from Rs 16.41 lakh. Employee benefit expenses were Rs 8.34 lakh, compared with Rs 8.97 lakh in June and Rs 8.45 lakh a year earlier.

The changes produced a Rs 13.98 lakh pre-tax profit, reversing the Rs 44,000 pre-tax loss in June and the Rs 35.94 lakh loss in September 2025. Finance cost was Rs 75,000, unchanged from June 2026 and compared with Rs 76,000 a year earlier. The inventory-change expense was Rs 93,000 in the September 2026 quarter.

What were Subhash Silk Mills' half-year results?

Subhash Silk Mills reported Rs 1.22 crore of total revenue for the six months ended September 30, 2026, compared with Rs 33.78 lakh in the corresponding 2025 period. Other income was Rs 1.20 crore, up from Rs 32.29 lakh, while revenue from operations rose to Rs 2.01 lakh from Rs 1.49 lakh. The disclosed half-year revenue was therefore led by other income rather than revenue from operations.

Half-year expenses were Rs 1.09 crore, compared with Rs 1.02 crore a year earlier. Administrative and other expenses increased to Rs 62.34 lakh from Rs 54.17 lakh, while employee benefit expenses declined to Rs 17.32 lakh from Rs 18.68 lakh. Depreciation and amortisation remained Rs 25.98 lakh in both six-month periods.

The six-month pre-tax result was a Rs 13.54 lakh profit, compared with a Rs 67.82 lakh loss in the corresponding prior-year period. Profit after tax was Rs 4.19 lakh, reversing a Rs 60.48 lakh loss a year earlier. The half-year tax expense was Rs 9.35 lakh, consisting of Rs 9.30 lakh of current tax and Rs 5,000 of deferred tax.

What changed in Subhash Silk Mills' financial position and cash flow?

Subhash Silk Mills reported total assets of Rs 13.02 crore at September 30, 2026, compared with Rs 12.99 crore at March 31, 2026. Property, plant and equipment declined to Rs 12.25 crore from Rs 12.51 crore, while inventories decreased to Rs 12.76 lakh from Rs 14.42 lakh. Current investments were Rs 36.85 lakh at September 30, compared with no such balance at March 31.

Total equity rose to Rs 9.56 crore from Rs 9.52 crore, comprising Rs 4.05 crore of equity share capital and Rs 5.51 crore of other equity. Long-term borrowings declined to Rs 33.45 lakh from Rs 51.10 lakh. Deferred-tax liability rose to Rs 2.00 crore from Rs 1.95 crore, while trade payables due to micro and small enterprises increased to Rs 96.81 lakh from Rs 21.87 lakh.

Net cash flow from operating activities was an outflow of Rs 91.00 lakh for the six months ended September 30, 2026, against an inflow of Rs 2.20 crore for the year ended March 31, 2026. The cash flow statement recorded Rs 1.14 crore of rent received and a Rs 6.35 lakh sundry-balance write-off adjustment. Investing activities generated Rs 1.14 crore, financing activities used Rs 19.15 lakh, and net cash generation for the period was Rs 3.84 lakh.

What did the limited review report say about Subhash Silk Mills' results?

Subhash Silk Mills' audit committee received, and its board approved, the unaudited September 2026 results on November 14, 2026. The results were prepared under Indian Accounting Standard 34, Interim Financial Reporting, and the Companies (Indian Accounting Standards) Rules, 2015, according to the filing.

Shabbir & Rita Associates LLP stated that nothing had come to its attention to suggest the unaudited statement failed to disclose information required under Regulation 33 of the Securities and Exchange Board of India listing regulations or contained a material misstatement. The firm also said its review under Standard on Review Engagements 2410 was narrower than an audit and did not provide an audit opinion.

Conclusion

Subhash Silk Mills returned to quarterly pre-tax profit of Rs 13.98 lakh and recorded a Rs 13.54 lakh pre-tax profit for the six months ended September 30, 2026, after losses in the comparative periods. However, the Rs 18.93 lakh deferred-tax charge converted the September-quarter pre-tax profit into a Rs 4.21 lakh reported loss.

The disclosed matters to watch are whether future tax movements again materially alter reported earnings and whether the Rs 91.00 lakh half-year operating cash outflow changes. The company also reported trade payables due to micro and small enterprises of Rs 96.81 lakh at September 30, 2026, compared with Rs 21.87 lakh at March 31, 2026.